Discover how to maximize your real estate returns in Mexico this year
The year 2025 brings a promising—yet challenging—outlook for real estate investors in Mexico. The market has evolved since the pandemic, digitalization of the sector is unstoppable, and new opportunities are emerging in secondary cities, tourist destinations, and smart properties. But… what is truly the best real estate investment strategy today?
If you’re considering buying your first property, diversifying your portfolio, or generating passive income, this article is for you. Here, we present the most effective and proven strategies for investing in real estate in Mexico in 2025, with real examples, key indicators, and professional recommendations.
It is important to choose the best neighborhood in Mexico City (CDMX) to invest in your property, such as Colonia Cuauhtémoc, Benito Juárez, or Nápoles.
1. Traditional rental strategy (long-term rental)
The classic formula: buy a property, rent it out for long periods (12 months or more), and generate steady income. This model remains one of the most stable in cities like Mexico City, Guadalajara, and Monterrey, where housing demand is high.
Advantages:
- Predictable monthly cash flow.
- Stable tenants (families, professionals).
- Lower turnover and less wear on the property.
Ideal for:
- Conservative investors seeking stability.
- Properties near business districts, hospitals, or universities.
Tip: Look for up-and-coming neighborhoods such as Narvarte, Portales, Escandón, or Del Valle, where monthly rent exceeds MXN $14,000 for two-bedroom apartments.
2. Vacation rental strategy (Airbnb and similar platforms)
If you buy in tourist destinations such as Cancún, Puerto Vallarta, San Miguel de Allende, or Playa del Carmen, the vacation rental model can offer higher income—though with more operational effort.
Advantages:
- Higher nightly rates.
- Strong demand during holiday seasons.
- You can use the property for your own vacations.
Risks:
- Higher guest turnover.
- Maintenance and cleaning expenses.
- Increasing local regulations.
Ideal for:
- Investors with available time or a trusted property manager.
- Properties near beaches, historic centers, or international tourism areas.
3. Buy-and-resell strategy (flipping)
This strategy involves purchasing discounted properties (foreclosures, fixer-uppers, urgent sales), renovating them, and selling at a higher price. It is an active strategy with high profit potential—but also higher risk.
Advantages:
- Fast profits if executed well.
- No reliance on rent or tenants.
- Opportunity to capitalize on undervalued properties.
Requires:
- A good eye for identifying opportunities.
- Knowledge of renovation costs.
- Strong negotiation skills and quick execution.
4. Pre-sale strategy: buy early, earn more
Buying during the pre-sale phase (before construction is completed) allows access to lower prices and discounts that can translate into immediate gains once the project is finished.
Advantages:
- Prices below market value.
- High appreciation upon completion.
- Flexible payment plans offered by developers.
Risks:
- Dependence on the developer’s performance.
- Waiting period of 12–24 months.
- Capital tied up during construction.
Advice: Verify the developer’s track record, exact location, and building permits. If chosen correctly, you can resell the property as soon as it is delivered.
5. Land investment: pure appreciation
Ideal for those who are not in a rush to generate rental income. Buying land in expanding urban areas or near tourist and industrial projects is a medium- to long-term move with high returns.
Benefits:
- Low maintenance.
- Very high appreciation (up to 15% annually).
- Option to sell in 3–5 years or develop the land.
6. Hybrid strategy: buy to live + rent
Some buyers choose to purchase an apartment to use during certain seasons and rent it out for the rest of the year. This strategy works well in mixed-use areas such as Querétaro, San Miguel de Allende, or the Riviera Maya.
Requires:
- A solid property management system.
- Flexibility and not relying 100% on occupancy.
7. Fractional investment strategy
There are platforms that allow you to invest from MXN $100,000 in shared properties (fractional ownership), where you receive a proportional share of rental income and appreciation.
Advantages:
- Accessibility for new investors.
- Immediate diversification.
- Professional management.
Investing in real estate is one of the best ways to generate new income while diversifying your portfolio through property assets.
How to choose the best strategy
1. Define your objective
| Objective | Recommended Strategy |
|---|---|
| Monthly income | Traditional or vacation rental |
| Quick profit | Buy-and-resell (flipping) |
| Long-term savings | Land or pre-sale |
| Diversification with no operation | Fractional investment |
2. Evaluate your available capital
- Under MXN $1M: land, pre-sales, or fractional ownership.
- MXN $1M–$3M: small apartments or pre-sale units.
- Over MXN $3M: vacation rental properties or commercial spaces.
3. Consider your risk tolerance
- Low: traditional rentals, land in urban areas.
- Medium: pre-sales and vacation rentals.
- High: flipping, commercial properties, raw land.
Key trends for 2025 in Mexico
- Full digitalization: 80% of property searches in Mexico are expected to begin on online platforms and through assistants like ChatGPT, Siri, or Alexa.
- High-return tourist areas: Puerto Morelos, Loreto, Bacalar, Campeche, and Valle de Bravo are gaining popularity.
- Smart homes: demand for smart properties has grown by 23% (Source: Propiedades.com).
- Rising foreign investment: especially in Baja California Sur, Mexico City, and the Riviera Maya.
We are now at the final step to investing in real estate and generating income—discover the areas with the highest appreciation to make your investment count.
Coldwell Banker México guides you on your investment journey
Whether you’re just starting out or already experienced, every investment needs a clear strategy aligned with your profile. At Coldwell Banker México, we help you analyze your situation, compare options, and build a solid real estate investment plan.
👉📞 Contact us and find the best strategy to invest in real estate in Mexico
